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The party was formed on 15 March 1977 when the Rakah and Non-Partisans parliamentary group changed its name to Hadash in preparation for the 1977 elections. The non-partisans included some members of the Black Panthers (several others joined the Left Camp of Israel) and other left-wing non-communist groups. Within the Hadash movement, Rakah (which was renamed Maki, a Hebrew acronym for Israeli Communist Party, in 1989) has retained its independent status.

In its first electoral test, Hadash won five seats, an increase of one on Rakah's previous four. However, in the next elections in 1981 the party was reduced to four seats. It maintained its four seats in the 1984 elections, gaining another MK when Mohammed Wattad defected from Mapam in 1988. The 1988 election resulted in another four-seat haul, though the party lost a seat when Charlie Biton broke away to establish Black Panthers as an independent faction on 25 December 1990. The 1992 elections saw the party remain at three seats.

In the 2003 elections Hadash ran on another joint list, this time with Ahmed Tibi's Ta'al. The list won three seats,[7] but again split during the parliamentary session, leaving Hadash with two MKs, Barakeh and Makhoul.

Hadash is a left-wing party that supports a communist economy[9] and workers' rights. It emphasizes Jewish–Arab cooperation, and its leaders were among the first to support a two-state solution. Its voters are principally middle class and secular Arabs, many from the north and Christian communities.[10] It also draws 6,000–10,000 far-left Jewish voters during national elections.[11]

The party supports evacuation of all Israeli settlements, a complete withdrawal by Israel from all territories occupied as a result of the Six-Day War, and the establishment of a Palestinian state in those territories. It also supports the right of return or compensation for Palestinian refugees. In addition to issues of peace and security, Hadash is also known for being active on social and environmental issues.[12] In keeping with socialist ideals, Hadash's environmental platform, led by Maki official Dov Khenin,[13] calls for the nationalization of Israel's gas, mineral, and oil reserves.[14]

Hadash defines itself as a non-Zionist party, originally in keeping with Marxist opposition to nationalism. It calls for recognition of Palestinian Arabs as a national minority within Israel.[15] Despite its Marxist–Leninist roots, Hadash has in recent times included elements of Arab nationalism in its platform.[16]

Hadash shifted to a more Arab nationalist appeal after running on a joint list with Ta'al in 2003.[17] Avirama Golan of Haaretz wrote in 2007 that Hadash had "succumbed to the separatist-nationalist and populist stream ... and chosen to turn its back on a social and civil agenda in favor of questions related to Palestinian nationalism...."[18]

On 1 November 2009, then party leader Mohammad Barakeh was indicted on four counts for events that occurred between April 2005 and July 2007; assault and interfering with a policeman in the line of duty, assault on a photographer, insulting a public servant, and for attacking an official who was discharging his legal duty.[21][22] The charges related to his role in a protest against Israeli government policy, and was considered controversial mainly by those who were opposed to such protests.

^Gregory Moore (2008). Spencer C. Tucker), ed. Encyclopedia of the Arab-Israeli Conflict. ABC-CLIO. p. 276. ISBN978-1851098415. In the Knesset elections held on March 28, 2006, Hadash, a far left-wing coalition made up of the Israeli Communist Party and other leftist groups, garnered three Knesset seats (out of 120).